Washington DC Solar Rebates, Incentives, and Tax Credits

In February 2009, the District Department of the Environment (DDOE) introduced the Renewable Energy Incentive Program (REIP), a rebate for solar photovoltaic (PV) and wind energy systems. The REIP is funded through the Sustainable Energy Trust which is supported by a public benefits charge on utility bills. As you will see in the example below, this rebate program truely makes home solar power systems affordable in Washington DC. However, as with all rebate programs, they will come to an end. Read on to find out how it all works.

Net-metering is available to homeowners in Washington DC.
Details:
  • The states net-metering rules specify that metering equipment must be capable of measuring the flow of electricity in two directions.
  • Utilities must pay for the installation of the second meter and/or other necessary equipment.
  • Net excess generation (NEG) is credited to the customer’s next bill at the utility’s full retail rate.
  • The renewable-energy credits (RECs) associated with customer generation are shared between the customer-generator and the utility.
  • Utilities must offer a standard net-metering contract approved by the PSC.
Rebates

Renewable Energy Incentive Program – $3/W DC for first 3 kW installed capacity; $2/W DC for next 7 kW; $1/W DC for next 10 kW

  • Maximum incentive is $33,000,
  • System must be grid-connected and installed by a licensed contractor; one-year warranty on installation required,
  • Homeowners must be customers of PEPCO
  • The program guidelines can be found here.

Example

LocationWashington DC
Av. Monthly Electricity Bill$120
Electricity Usage10,284 kWh
System Size6.00 kW
Electricity Generated per year7,719 kWh
% Reduction in Electricity Bill75
Cost / Watt (installed)$7.00
Cost Breakdown
Total Cost$42,000
Rebates
State Rebate ($3/W DC for first 3 kW installed capacity; $2/W DC for next 7 kW)$15,000
Federal Tax Incentive$8,100
NET COST$18,900
Cash Flow
New Av. Monthly Electric Bill$30
Monthly Loan Payment (30 yrs, 6%, 0 down)$113
Tax Saving*$36
NEW MONTHLY NET COST$107- That’s $13 less than your current electricity bill!
Environmental Benefits
Greenhouse Gas (CO2) Saved:
over 25-year system life
158 tons
* Tax savings will decrease as the principal is paid down. Please consult your tax preparer.
Thanks to these great state and federal solar rebates, you could be paying a lower monthly electric bill, protecting yourself from electricity rate increases, and contributing to a cleaner environement. If you think you might be a good candidate for solar we are always happy to connect you with qualified Washington DC installers who can answer any questions and provide you with tailored, no obligation quotes.